Ways For SMBs To Reduce ERP Spending


In recent years, the use of enterprise resource planning (ERP) software has expanded heavily. It is the centralized corporate system to integrate some working processes. Under the trend of digital transformation, most of the enterprises and small & midsize businesses (SMBs) operate their business with ERP. Allied Global Research recently reported that the global ERP market reached $39 billion in 2019 and is projected to reach $86 billion by 2027. It presents that ERP market is keep expanding in the world. With global inflation, all enterprise and corporation should explore some ways for reducing ERP system in a long run. Let’s see some ways for corporate to reduce their ERP spending:


How to reduce ERP spending?

Here are two ways that SMBs should be aware when create and maintain the top-notch ERP system:


  1. Lighten up your requirement specification

It is important for SMBs to balance user needs with efficiency advantages. Based on the report from Software Path, only 26% of the staff across an organization actively uses the company’s ERP system. Therefore, management level should design the ERP system and control it’s cost precisely.


Here are some tips for developing an ERP system:

  • Only invite key decision-makers to manage the design process of ERP system, since they understand well the key functions of the ERP they are needed. Furthermore, the ERP cost should mainly cover the most core system function they really need, rather than all ideal functions.


  • Only focus on the must-have functions during the ERP design. Do not treat the process of requirement identification as a big wish list for all staff. It is important to focus on the need of heavy used population.


  1. Embrace next-gen training

There still have some ways to reduce the cost of training, after ERP integrations and upgrades. Under the pandemic, most of the in-person training changed to remote format. And its quality still be good even in the disorder situation. Some training tips below:


  • Shorter training is better. People are hard to absorb a bunch of new knowledge in half or full day. So that it is good to break a long training into few shorten parts, and users take the training in different periods.


  • Video lessons work. It makes learners to be more convenience since they can take the training whenever they want. Moreover, they are the low-cost tools for explaining ERP processes and protocols. They also offer an easy way to provide ongoing training for the staff in the same corporation. Even if some new staff can also watch the same training videos for learning the ERP system.


All SMBs still have chances to get digital transformation with limited budgets. If you have a concrete plan about the core system functions you really need and accept the remote training format, you can still have an effective ERP system for company.


Contact us today!

Want to know more ways to reduce ERP spending? Consultants from Achiever Technology helps you to understand more about the usage and benefits from the enterprise resources tool, such as HRMS, ERP, POS and CRM. Contact us today!